Question: Two circles are centered at the origin, as shown.  The point $P(8,6)$ is on the larger circle and the point $S(0,k)$ is on the smaller circle.  If $QR=3$, what is the value of $k$?

[asy]
unitsize(0.2 cm);

defaultpen(linewidth(.7pt)+fontsize(10pt));
dotfactor=4;
draw(Circle((0,0),7)); draw(Circle((0,0),10));
dot((0,0)); dot((7,0)); dot((10,0)); dot((0,7)); dot((8,6));
draw((0,0)--(8,6));
label("$S (0,k)$",(0,7.5),W);
draw((13,0)--(0,0)--(0,13),Arrows(TeXHead));
draw((-13,0)--(0,0)--(0,-13));

label("$x$",(13,0),E); label("$y$",(0,13),N); label("$P(8,6)$",(8,6),NE);

label("$O$",(0,0),SW); label("$Q$",(7,0),SW); label("$R$",(10,0),SE);

[/asy]
Solution: We can determine the distance from $O$ to $P$ by dropping a perpendicular from $P$ to $T$ on the $x$-axis. [asy]
unitsize(0.2 cm);
defaultpen(linewidth(.7pt)+fontsize(10pt));
dotfactor=4;
draw(Circle((0,0),7)); draw(Circle((0,0),10));
dot((0,0)); dot((7,0)); dot((10,0)); dot((0,7)); dot((8,6));
draw((0,0)--(8,6)--(8,0));
label("$S (0,k)$",(0,7.5),W);
draw((13,0)--(0,0)--(0,13),Arrows(TeXHead));
draw((-13,0)--(0,0)--(0,-13));
draw((8.8,0)--(8.8,.8)--(8,.8));
label("$x$",(13,0),E); label("$y$",(0,13),N); label("$P(8,6)$",(8,6),NE);

label("$O$",(0,0),SW); label("$Q$",(7,0),SW); label("$T$",(8,0),S); label("$R$",(10,0),SE);

[/asy] We have $OT=8$ and $PT=6$, so by the Pythagorean Theorem, \[ OP^2 = OT^2 + PT^2 = 8^2+6^2=64+36=100 \]Since $OP>0$, then $OP = \sqrt{100}=10$. Therefore, the radius of the larger circle is $10$. Thus, $OR=10$.

Since $QR=3$, then $OQ = OR - QR = 10 - 3 = 7$. Therefore, the radius of the smaller circle is $7$.

Since $S$ is on the positive $y$-axis and is 7 units from the origin, then the coordinates of $S$ are $(0,7)$, which means that $k=\boxed{7}$.